TechM, Tata Steel, Infosys, HUL, LTIMindtree: Nifty stocks with highest FY24 EPS downgrades

Tech Mahindra Ltd (TechM), UPL Ltd, Tata Steel, Hindustan Unilever Ltd (HUL), Infosys Ltd and LTIMindtree were among Nifty constituents that saw the maximum downgrades in FY24 earnings per share (EPS) following the first quarter results.

As per Motilal Oswal Securities, TechM saw its FY24 EPS estimate getting slashed by 10 per to Rs 50.90 from Rs 56.50 earlier. TechM's FY25 EPS estimate also witnessed an 8.2 per cent downgrade to Rs 63.70 from Rs 69.40. The stock delivered a flat return in the last one month. Its average target price at Rs 1,068, as per Trendlyne, suggested a 5 per cent potential downside ahead.

UPL saw a 7.2 per cent cut in its FY24 EPS estimates and a 7.6 per cent drop in FY25 EPS estimates. This stock has tanked 12 per cent in the last one month but if we go by its average target price, the stock offers 28 per cent potential upside, as per publicly available data with Trendlyne.

Tata Steel has seen its FY24 EPS estimate falling a 5.4 per cent but FY25 EPS estimates rising 2 per cent. This stock is up 4 per cent in the last one month and the average target price on the counter suggests a potential 14 per cent further upside.

HUL saw a 3.9 per cent cut in its FY24 EPS estimates and a 2.8 per cent drop in FY25 EPS estimates. This stock is down 6 per cent in the last one month but its average target price suggests a potential 13 per cent upside ahead.

Infosys (3.8 per cent), LTIMindtree (3.5 per cent), UltraTech Cement (2.7 per cent), Tata Consumer (2.5 per cent), BPCL (2.3 per cent) and HCL Technologies (2 per cent) are some of the other Nifty constituents that saw sharp cuts in earnings estimates for the ongoing financial year.             

Net-net, out of a total 33 Nifty constituents that Motilal Oswal Securities considered, six saw upgrades of more than 3 per cent and six downgrades of over 3 per cent for FY24.

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